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Private education group ADvTECH [JSE:ADH] anticipates its headline earning per share to rise as much as 23% for the year ended 31 December 2019, thanks to its recent acquisition of Monash SA.
According to a trading statement release by the company on Wednesday, ADvTECH advises shareholders that it has "reasonable certainty", that basic earnings per share and headline earnings per share for the year ended 31 December 2019 will be between 17% and 23% higher than in December 2018.
This will put headline earnings per share between 83.3 cent and 87.6 cents per share compared to 73.6 cents for the comparative period. ADvTECH attributed the expected rise in earnings to one-off transactions including "bargain purchase gains" arising from the Monash SA acquisition, foreign exchange movements and insurance proceeds related to a previously reported fraud event.
In 2018, ADvTECH which has more than 100 schools and over 25 tertiary campuses announced the acquisition of Monash SA now referred do as IIE MSA, citing that the demand for private tertiary education is set to be on the rise in the next few years. The acquisition was finalised in 2019.
Monash SA joins Advtech’s other popular private higher education institutions such as Rosebank College, Varsity College and Vega. ADvTECH inidicated at the time that Monash would boost its student numbers by at least 6 500. The acquisition will bring ADvTECH's tertiary student complement to more than 40 000 full-time and 30 000 distance students.
The company will release its full results release for the year ended 31 December 2019 in March 23, 2020. ADvTech’s share price dipped 2.9% to 8.88 cent on Wednesday.
